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Billionaire Paul Singer Warns Of Major Social Unrest In U.S.

One of the most highly respected hedge fund managers in the world, billionaire Paul Singer, has just issued a deeply troubling warning that an acceleration in inflation will trigger major social unrest in the United States. Of course this inflation would also blow the lid off the gold market. There is also a fascinating chart from top Citi analyst Tom Fitzpatrick included in this piece.

The following is from Art Cashin’s note today: More There Than Noticed – Fabled hedge fund manager, Paul Singer’s latest Elliot Management Corp letter is getting picked up by the press and Wall Street alike. The primary citation in most cases is his concern about a massive CME from the sun that might change the Earth drastically.

As with most things Mr. Singer does, there are far more things of interest in the letter than the CME warning. Here’s a bit on the Fed and inflation cited by Russ Dallen of Caracas Capital:

“We believe that if and when inflation passes from a phenomenon that affects only a certain list of assets (a growing list, presently a combination of things owned by the well-off plus a number of things that are basic necessities) to a widespread “in-your-face” phenomenon affecting the cost of living of almost the entire population, then the normal yardsticks of risk, return and profit may be thrown into the garbage can. These measures may be replaced by a scramble by citizens and investors to preserve value on a foundation of shifting sand, together with societal unrest that may make the current politically-useful “inequality” riffs, scapegoating of the “1%” and complaining about those “millionaires and billionaires” who are not “paying their fair share,” look like mere warm-ups for real class warfare.”